NRO ACCOUNT SCHEME
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What does NRO stand for in the context of bank accounts?
NRO stands for Non-Resident Ordinary, a rupee-denominated account held by non-resident Indians to manage income earned in India.
Can an NRO account be converted to an NRE account upon re-emigration of the account holder?
No, NRO funds are not freely repatriable like NRE funds.
Who is eligible to open an NRO account in India?
Any person resident outside India, including NRIs and PIOs (Persons of Indian Origin), is eligible to open an NRO account.
What is the maximum repatriation allowed from NRO account per financial year for current income?
Current income like rent, pension is fully repatriable.
In which currency is an NRO account maintained?
An NRO account is maintained in Indian Rupees (INR) and cannot be held in foreign currency.
Which form must be submitted to repatriate capital funds from an NRO account exceeding the standard limit?
Form 15CA and 15CB along with CA certificate are required.
Can a returning Indian convert their existing resident savings account to an NRO account?
No — a person leaving India to become an NRI must convert their existing resident savings or current account to an NRO account upon becoming a non-resident.
Can NRO account funds be used to make investments in Indian mutual funds?
Yes, NRO funds can be invested in Indian mutual funds.
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